Student loan payments to HMRC

**PhilAtBFCA** · 9 January 2009, 07:46

Student Loan Payments

whattodo

Its the employers obligation to calculate what should be paid and pay it with the NI and Tax payments for the period.

Your payroll software should help with this if you are using any and callculate the right amounts.

Otherwise there is a full explanation on the HMRC website.

Phil

**whattodo** · 9 January 2009, 08:11

If you have additional income on your self assessment tax return, e.g. interest / dividends, then there's further income tax and student loan payments to be made by 31st of Jan isn't there? That was my understanding anyway.

I've had a letter confirming the amount due in income tax, but nothing regarding the student loan payment. I was wondering if anyone else knows what usually happens?

My accountant worked out the amount due in incometax and student loan but has been a bit vague on the details. Maybe I need a new one next tax year

**PhilAtBFCA** · 9 January 2009, 09:48

Student Loans and SATR

Hi whattodo

Student Loan deduction are calculated as follows in an SATR:

A)Total earned income
B) Total unearned income (if unearned income is less that £2K than do not add, if more than £2K add all unearned income)

C) A + B
D) Deducect £15K
E) (C - D) * 9%

From E deduct student loans already deducted through your salary and that will give you student loan repayment due.

Phil

**whattodo** · 9 January 2009, 12:06

Thanks for the replies. I think I should have been a bit clearer in my question though.

Calculating the amount due is not the problem. I'm wondering how should I actually pay the money. Who should I pay it to and how?

For example with income tax I got a letter through the door, confirming the amount due, and giving me a list of ways to pay, as well as the reference number to give with all payments. I paid that online, easy.

With the money due for student loan I have calculated the amount, and that was on the self assessment return, but i've had no word from HMRC to confirm the amount or tell me how i'm supposed to pay and to who.

So just who do I give the money to and how? Everything I find on HMRC website just tells me about the amount of money to pay but not how to pay. Do I send a cheque to a certain address? Do I need a reference number like when paying income tax? Can I pay online somewhere? Should I have received a letter by now seeing as it's due at the end of January (according to a letter from my accountant)?

Thanks in advance to anyone who can answer these questions. I'm hoping there's a contractor out there who has already had to do this at some point.

**RSoles** · 9 January 2009, 19:23

If the amount was shown during your SA entry you should have received a letter / bill by now.
My wife has a Student loan to repay and due to an unfortunately good year last/last-but-one year she went over the threshold.
Letter arrived Christmas eve.....<thanks guys>.

If you don't receive one soon maybe it'd be a good idea to ring HMRC and ask.

RS

**whattodo** · 9 January 2009, 21:54

Thanks Rsoles, now I know where I stand. I'm obviously missing a letter somewhere. I'll start by asking my accountant in case he's got something from HMRC.

Same thing happened with my company's corporation tax bill for the previous tax year. Turned out my accountant had the bill with payment details but didn't think to forwarded it on to me until I asked what was going on close to the deadline.

As I said in a previous post, i'm tempted to switch, but I don't know how much hassle that is. I seem to be left in the dark a bit too much at times.

On a separate note i'm thinking I should save up and pay it off if possible. I don't think I can earn enough interest on savings to keep pace with the interest on the loan. Bloomin interest rates.

**xoggoth** · 9 January 2009, 22:40

Surprised. My sons were certainly sent statements of what was owed and how to pay.

**whattodo** · 9 January 2009, 22:53

I get statements from the student loans company telling me what my balance is, and they give details of how I can make payments to the student loans company to pay off my loan early.

However I think any payments made to the student loans company in that way aren't deducted from what you have to pay HMRC that tax year. They're seen as additional payments.

E.g. You loan balance is £5k.
You get £xxxx that year resulting in £1000 payment being due by 31st of January to HMRC.
You go to student loans company and give them £1000.
HMRC comes knocking and still wants £1000 payment for that tax year.

At least that's my understanding from what i've read.

I've sent an email to my accountant asking for some clarification

Hopefully he's just sitting on a letter like last time, as annoying as that would be

**whattodo** · 9 January 2009, 22:56

Just re-read your post xoggoth, I think you're talking about the letter i'm after rather than the standard student loan balance statements.

I don't suppose you have any details of what was on there do you? E.g. a website where you make online payments or something like that?

Student loan payments to HMRC